South Korea Launches Blockchain-Powered Digital ID Card Pilot Program

South Korea has embarked on a pilot program to introduce a blockchain-powered digital identity card, modernizing a system that has been in place for nearly six decades.

South Korea has begun a pilot program to introduce a blockchain-powered digital identity card, updating a system that has been in place for nearly six decades. The initiative will be rolled out in nine regions, including Sejong, Yeosu, and the counties of Geochang and Yeongnam. All residents aged 17 and above in these areas will be eligible for the program.

The transition to digital identification builds upon the country’s existing national ID framework, which has been operational since 1968. In recent years, the government has introduced several digital identity solutions, including a mobile driver’s license, a veterans’ registration card, and an overseas ID card. These advancements reflect a broader global trend toward digital identity systems, as governments increasingly integrate digital solutions into public administration.

While the advantages of digital IDs are evident, cybersecurity remains a critical concern. As digital identity systems become an integral part of citizens’ daily lives, ensuring robust protection against cyber threats has become a priority, especially as artificial intelligence accelerates the evolution of cybercrime.

The South Korean government intends to leverage encryption and blockchain technology to fortify security within the digital ID system. While specific details regarding the blockchain platform to be used remain undisclosed, the country has previously explored blockchain applications through Seoul’s municipal initiatives, such as the ICON network, albeit for limited functions like document issuance.

In addition to the digital identity card rollout, the Ministry of Interior and Safety has announced plans to introduce digital residence cards for foreign nationals. These cards will hold the same legal status as their physical counterparts and will facilitate access to both public and private sector services. Collaborations with local financial institutions are also underway to enable the integration of digital cards into fintech services.

Foreign nationals whose residence cards were issued before January 1, 2025, will be required to complete an onboarding process at an immigration office. On the other hand, residence cards issued in the current year are equipped with an integrated circuit chip, streamlining the digital identity setup via a mobile application.

South Korea’s digital identity initiative aligns with similar efforts in other countries. Qatar recently introduced a national digital authentication and trust services strategy for 2024-2026, which includes a unified digital ID as a core component. Afghanistan’s e-Tazkiras system has seen widespread adoption, with over 15 million citizens enrolled, prompting the government to establish additional registration centers to accommodate the growing demand. In Nigeria, an ambitious initiative backed by the World Bank aims to achieve full digital ID enrollment for 180 million citizens by the end of 2026.

In a separate development, former Thai Prime Minister Thaksin Shinawatra has urged the government to legalize digital assets and online gambling. His remarks followed the approval of a new draft law that relaxes existing restrictions on casino operations. Despite stringent gambling laws, reports indicate that billions of dollars flow into Thailand’s gambling industry each year.

Shinawatra has drawn parallels between gambling and digital assets, arguing that the government’s approach to both sectors has been overly restrictive. While regulations surrounding digital assets have been eased in recent years, stringent controls remain in place. Recent proposals have suggested the legalization of digital asset payments in the tourist hub of Phuket, along with regulatory approval for digital asset spot exchange-traded funds (ETFs).

He has also pointed to global political developments, suggesting that the resurgence of digital assets will accelerate with shifting economic policies. The former prime minister has advocated for the country’s Securities and Exchange Commission (SEC) to permit stablecoin trading, emphasizing that asset-backed digital currencies pose minimal risk and function as an alternative global currency.

Shinawatra, who served as Thailand’s prime minister from 2001 to 2006, remains an influential figure in the nation’s political landscape. His daughter, Paetongtarn Shinawatra, currently holds the office of prime minister.

Thailand continues to make strides in financial technology, boasting one of the most advanced central bank digital currency (CBDC) frameworks globally. The nation is also a founding participant in the mBridge initiative, a regional CBDC project aimed at enhancing cross-border payment efficiency among members, including Hong Kong, the UAE, and China.